Contineum Therapeutics Announces Pricing of Initial Public Offering
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Insights
The initial public offering (IPO) of Contineum Therapeutics is a significant financial event that could attract investors looking for exposure to the biopharmaceutical sector. With a set price of $16.00 per share, the company aims to raise $110 million, which indicates a strong capital injection for their research and development activities. This capital is essential for a clinical-stage company that needs to fund costly trials and push for regulatory approvals.
Investors should be aware that biopharmaceutical IPOs carry inherent risks due to the long development cycles and regulatory hurdles associated with bringing new therapies to market. The performance of Contineum's stock will likely be volatile, influenced by trial results, FDA filings and market sentiment towards healthcare investments.
The underwriters' involvement, including prominent names like Goldman Sachs and Morgan Stanley, suggests confidence in the offering, which can be a positive signal to the market. However, investors should conduct due diligence, as the success of the IPO does not guarantee long-term stock performance.
Contineum's focus on neuroscience, inflammation and immunology is strategically positioned in areas of high unmet medical need, which could translate to significant market potential if their therapies prove successful. The decision to go public could be driven by the need to finance their pipeline's progression, especially as they approach critical clinical milestones.
Analyzing the competitive landscape, Contineum's valuation and growth prospects should be compared to peers with similar pipelines and market capitalizations. The success of their IPO and subsequent share performance will be contingent upon their ability to meet development timelines and demonstrate clinical efficacy.
Long-term investors will be interested in the company's pipeline depth, intellectual property portfolio and strategic partnerships. These factors can provide sustainable competitive advantages and are important in assessing the company's future revenue streams and growth trajectory.
For stakeholders in the biopharmaceutical industry, the transition from a private to a public entity allows for greater scrutiny and potential for investment. The funds raised through Contineum's IPO will likely be allocated towards advancing their clinical programs, which could accelerate the development of therapies in their targeted indications.
Given that Contineum is a clinical-stage company, the progression of their therapies through the regulatory pathway is critical. The success in early clinical trials does not always predict subsequent phases and investors should be cautious of this high-risk, high-reward sector.
The additional shares option granted to the underwriters can serve as a buffer to stabilize the stock price post-IPO, but it could also dilute current shareholders' value if exercised. Stakeholders should monitor the company's burn rate and milestone achievements post-IPO to gauge the sustainability of their operations and investment potential.
SAN DIEGO, April 04, 2024 (GLOBE NEWSWIRE) -- Contineum Therapeutics, Inc. (Contineum), a clinical stage biopharmaceutical company focused on discovering and developing novel, oral small molecule therapies that target biological pathways associated with specific clinical impairments for the treatment of neuroscience, inflammation and immunology indications with high unmet need, today announced the pricing of its initial public offering of 6,875,000 shares of its Class A common stock at a price to the public of
Goldman Sachs & Co. LLC, Morgan Stanley, Stifel, and RBC Capital Markets are acting as joint book-running managers for the offering.
A registration statement relating to the shares being sold in this offering became effective by the Securities and Exchange Commission on April 4, 2024. The offering is being made only by means of a prospectus, copies of which may be obtained, when available from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720, or by email at syndprospectus@stifel.com; and RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, New York 10281, by telephone at (877) 822-4089, or by emailing equityprospectus@rbccm.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Contineum Therapeutics
Contineum Therapeutics is a clinical stage biopharmaceutical company focused on discovering and developing novel, oral small molecule therapies for neuroscience, inflammation and immunology (NI&I) indications with high unmet need. Contineum is focused on targeting biological pathways associated with specific clinical impairments, that the Company believes, once modulated, can demonstrably impact the course of disease. The Company has a pipeline of internally-developed programs to address multiple NI&I disorders, including PIPE-791, an LPA1 receptor antagonist, in Phase 1 clinical trials for idiopathic pulmonary fibrosis and progressive multiple sclerosis, and PIPE-307, a selective inhibitor of the M1 receptor in a Phase 2 clinical trial for relapse-remitting multiple sclerosis. Contineum is developing PIPE-307 in collaboration with Johnson & Johnson Innovative Medicines.
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements with regard to the terms of the public offering and the expected trading commencement and closing dates. Words such as “expects,” “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions and no assurance can be given that the proposed initial public offering discussed above will be completed on the terms described. Completion of the proposed initial public offering and the terms thereof are subject to numerous factors, many of which are beyond the control of Contineum, including, without limitation, failure of customary closing conditions and the risk factors and other matters set forth in the prospectus included in the registration statement in the form last filed with the U.S. Securities and Exchange Commission (the “SEC”). These and other risks are also described in other documents that Contineum subsequently files with the SEC from time to time. Contineum undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Company Contact:
Peter Slover
CFO
pslover@contineum-tx.com
Investor Contact:
Amy Conrad
amy@juniper-point.com
FAQ
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